This story begins in the mid-1500s when Jews, expelled from Spain and Portugal during the inquisitions of the late 1400s, found refuge and eventually established a significant presence in Amsterdam. Over time, they played a key role in shaping Europe's financial landscape, including the creation of the Amsterdam Stock Exchange in 1602 and the establishment of the Bank of Amsterdam in 1609. These institutions became models for future financial systems.
To quote the words of Nikolaus Kopernikus in 1517, “The greatest and most forbidding mistake has to be when a ruler tries to make a profit from the minting of coins by introducing and circulating new coins, with an inferior weight and fineness, alongside the originals and claims that they are both of equal value...” These words should have been remembered a hundred years further down the line.
The so-called “Kipper and Wipper period” saw the highest inflation in the history of the Holy Roman Empire of the German Nation. The start of the Thirty Years’ War marked the beginning of a drastic deterioration in the quality of coins in Central Europe, which lasted until 1623. The origin of this financial and economic crisis, however, is to be found some decades before this.
New coins were then minted by adding copper to the silver that was extracted from these coins. The profit made by reminting coins in this way was so enticing that the silver content of the coins was further and further reduced, until pure copper coins eventually came onto the market.
Trade and transport picked up as a result of the increased volume of cash in circulation. Economic output rose, but the prices of individual products also went up rapidly. Those who had the opportunity to pass on the price rises to their customers did just that. Those receiving a fixed income, such as teachers or pensioners, no longer had enough money to live on.
The Dutch East India Company (VOC), established in 1602, was one of the most powerful and influential trading enterprises in history. Founded in the same year as the world’s first stock exchange in Amsterdam, the VOC held a monopoly on the spice trade between Western Europe and Asia, dominating global commerce during the 17th century.
In 1609, the VOC hired English sea captain and explorer Henry Hudson to find a Northeast Passage to Asia, a route that would allow ships to sail around Scandinavia and Russia. When Arctic ice blocked his path, Hudson abandoned the Northeast Passage and instead sailed westward in search of a Northwest Passage. During this voyage, he explored the northeastern coast of North America aboard the ship Halve Maen. His journey led to landfalls at Newfoundland and Cape Cod, marking some of the earliest European explorations of the region.
By 1621, Dutch settlers had established colonies in what would later become the states of New York, New Jersey, Delaware, and Connecticut, with smaller outposts in Pennsylvania and Rhode Island. This vast territory, known as New Netherland, was administered by the Dutch West India Company (WIC), founded in 1621. The WIC became the world’s first multinational corporation, backed by the financial infrastructure of a central bank and the Amsterdam stock exchange. It played a crucial role in managing Dutch colonial ventures in the Americas.
The Dutch Tulip Bubble of the 1630s was a speculative frenzy that enriched Amsterdam's financial sector, and the wealth generated was later used to support William of Orange in his campaign to seize the English throne from his father-in-law, James II. With William's success, the stage was set for the expansion of the financial institutions that had been pioneered in Amsterdam. By 1694, these systems—central banking, stock markets, and lending houses—were firmly established in London.
In 1654, the first Jewish settlers arrived in New Netherland, marking the beginning of Jewish immigration to North America. By this time, Jewish merchants and investors had become significant stakeholders in both the Dutch East and West India Companies, collectively owning more than a quarter of their shares. Their involvement in these enterprises reflected the growing influence of Jewish communities in European commerce and finance.
From there, England exported this new form of banking to its colonies, spreading its influence across the globe. This financial system, rooted in the experiments of Amsterdam and refined in London, would go on to shape the modern world.
On February 9, 1674, less than a century after the establishment of the Amsterdam stock exchange and central bank, the Dutch Republic agreed to transfer the colony of New Amsterdam to England under the Treaty of Westminster. The city was renamed New York in honor of the Duke of York, later King James II. This transfer occurred shortly before the Glorious Revolution of 1688, which reshaped the political landscape of England and its colonies.
In Europe, the financial center of gravity shifted from Amsterdam to London following the Glorious Revolution of 1688. The Bank of England, established in 1694, became a cornerstone of this new financial order. Jewish banking dynasties, who had already tested their financial systems in Amsterdam, played a significant role in this transition. The Glorious Revolution also marked the end of the centuries-long struggle in England over absolutism and the divine right of kings, as power shifted to Parliament. The City of London, a sovereign entity within England, emerged as the new hub of global finance, heavily influenced by these banking interests.
The Edict of Expulsion of the Jews from England was issued on July 18, 1290 by King Edward I due to the Jews operating a vast "Money Clipping" operation where they would shave gold coins and then use those coins like a nigger using a fake $20 bill at a gas station.
In 1664 the Edict of Expulsion on Jews was lifted by King Charles II.
In 1666 just two years later one third of the city is destroyed in a fire in what is now known as The Great Fire of London. The fire affected almost exclusively the “medieval” walled section of the city where the oldest structures stood.
The fire destroyed Three notable structures:
>The Guildhall which was the Administrative center of the City of London
>St. Paul's Cathedral which stood since 603 AD and was the religious center of London
>The Royal Exchange which was the first exchange of London built in 1571 and modeled after the ones established in Amsterdam and Belgium
The Great Fire of London acted as a catalyst for modernization and economic growth. The rebuilding efforts, combined with the emergence of new financial services, legal frameworks, and global trade connections, transformed London into a leading financial center. By the 18th century, London had become the financial capital of the West, a position it maintained for centuries.